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Before having a practical experience, I was always curious about how bank reconciliations were completed for real companies . Because my bookkish knowledge was to compare the bank statement with cashbook and adjust differences.
I often heard seniors discussing that we are doing bank reconciliation, but I always had that thought in my mind that how difficult it could be doing adjustments for the real company's financials and then reconcile bank.
When I finally started handling the full cycle accounts and bank reconciliation was a major task, then I started experiencing the real challenges involved in it.
Theory explains you the process, but the practical knowledge teaches you how to solve the real challenges.
We can't understand the theoretical concepts fully until we have applied in actual scenarios.
what is the one concept you understood better from practical experience?
For me, it was realizing that bank reconciliation isn't an accounting task, it's a business health check.
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